Have you won­dered what the total mar­ket val­ue of all of the world’s real estate is? Is such a num­ber even ascer­tain­able, and if so can you imag­ine what it is? This is exact­ly what Sav­ills, an elite Eng­lish real estate com­pa­ny, set out to accom­plish and found they some inter­est­ing things.

In 2016, they esti­mate that total prop­er­ty val­ue world­wide was $ 217 tril­lion. In the fol­low­ing year, 2017, this val­ue rose to $ 228 tril­lion. That’s an increase of 5%.

The study also revealed a very inter­est­ing trend. Real estate is the most valu­able asset in the world by far. Equi­ties, bonds and pre­cious met­als are all way behind real estate in total mar­ket cap. For exam­ple, the val­ue of all the gold that has ever been mined in the world, ever, is only $ 6.5 tril­lion!

The dia­gram shows the val­ue dis­tri­b­u­tion of the world’s assets in 2017. Fig­ures are in tril­lions of US dol­lars.

Dia­gram Doc­tor Prop­er­ty

In this study, res­i­den­tial real estate is val­ued at $ 168.5 tril­lion. If you count the exist­ing total of 2.05 bil­lion house­holds world­wide, that’s an aver­age of $ 82,000 per res­i­den­tial prop­er­ty. Of course, this val­ue is deci­sive­ly influ­enced by the expen­sive indus­tri­al­ized coun­tries like North Amer­i­ca, Europe and parts of Asia.

Inter­est­ing facts;

North Amer­i­cans are just 7% of the world’s pop­u­la­tion, but they own 22% of the total val­ue of res­i­den­tial real estate in the world.

Europe’s inhab­i­tants occu­py 11% of the world’s pop­u­la­tion. But the home own­er­ship is 23% of val­ue world­wide.

Of course, these val­ues from indus­tri­al­ized coun­tries also gen­er­ate enor­mous poten­tial in devel­op­ing coun­tries. For exam­ple, in Africa, 19% of the world’s pop­u­la­tion is liv­ing, but hous­ing is only 6%.

It is esti­mat­ed that 34% of all res­i­den­tial real estate world­wide invest in invest­ments and make the hous­ing mar­ket avail­able. The rest is val­ued pri­vate­ly for pri­vate use. With com­mer­cial real estate it looks already dif­fer­ent. Here, about 33% is self-employed and 67% go to the com­mer­cial sec­tor. In this busi­ness sec­tor, there was also the largest increase in real estate assets. Over­all, this was 7 per­cent com­pared to the pre­vi­ous year and is nom­i­nal­ly worth $ 32.3 tril­lion.

The real estate mar­ket world­wide expects such an inves­ti­ga­tion of immense impor­tance. Not only that he is from year to year, that he also adds val­ue. Also, with regard to the tem­po­ral inter­est costs, an invest­ment in real estate becomes rel­a­tive­ly alter­na­tive. The Styr­i­an real estate prices and the ever increas­ing total pop­u­la­tions make a prop­er­ty more and more inter­est­ing for investors.

We at Doc­tor Prop­er­ty are very curi­ous how the num­bers will evolve in the com­ing years. Of course we keep you up to date. Take anoth­er look at the blog of Doc­tor Prop­er­ty. We look for­ward to you.